Civil liability insurance is a legal requirement for the proper functioning of a business or the conduct of a commercial activity. But, much more importantly, it provides significant protection for the insured person and support in numerous areas and situations.
Consequently, regardless of a company’s exposure to risk or the need for a more standard or special policy, all companies, businesses and professions need cover that meets their needs and protects them against the risks associated with their activity. RibéSalat’s objective is to offer our customers the best product for their specific needs, by understanding their needs and tailoring solutions for each case.
Civil Liability and the law
The Civil Code regulates matters of civil law. Article 1902 of the Code states:
“Anyone who, by action or omission, causes harm to another, whether through fault or negligence, is obliged to repair the damage caused”.
Every individual is thus answerable for their own actions and those of the people for whom they are responsible (in the case of business, it refers to employees or people reporting to them).
This duty of care required of the person causing the damage is “civil liability” and means they must compensate injured third parties, involving judicial proceedings in the event of a dispute. Whether or not the case goes to court, this responsibility may involve significant expenditure, which can jeopardize both the company’s assets and its viability.
Why do I need Civil Liability Insurance?
Civil Liability Insurance is important because no one is immune from making mistakes in the course of their work, not even those who provide advice or services. At RibéSalat we understand that mistakes can happen to anyone, even the best and most experienced professionals.
It must also be understood that it is not necessary for an error to have occurred for a claim to be made. A claim may even be unfounded, but you will still need the help of legal services or may be involved in a court case, with substantial defence and procedural costs. These would be covered if you have Civil Liability Insurance.
If you want to be able to carry out your activity or profession while keeping potential risks under control, you must have Civil Liability insurance, which will protect your assets and your company’s viability. Moreover, when you take out a Civil Liability policy, you can focus on what really matters: your company or business.
It is important to remember that we are all exposed to third-party claims for damage caused:
- The restaurant that gives some of its diners food poisoning.
- A leaking pipe in my premises that causes water damage in the adjoining offices.
- An error when a lawyer files an appeal.
- Medical negligence affecting a patient.
- The electrician who damages the floor when he drops one of his tools.
- Setting fire to the property you are renting.
- An employee suffers an accident because of a mistake by the employer and dies.
- A customer enters our premises and is injured when he trips over a loose wire.
Types of policy and cover available
As we can see, there are many types of Civil Liability. For this reason there are different types of policy and cover to deal with them. Below, we list the main types, although there are others in the market:
- Civil Liability for Operations or Business: This covers material and personal damage and its financial consequences, in the course of a business activity.
- Professional Civil Liability: Among other things, this covers errors or omissions and direct financial damage without the need for there to be prior material or personal damage.
- Civil Liability for Work-related Accidents: This provides protection for the employer in the event of responsibilities arising from accidents to employees and/or dependent personnel.
- Civil Liability for Products: This covers liability arising from damage that may have been caused by a product manufactured, distributed or marketed by the insured party. Additionally, as part of the guarantee, the costs of having to withdraw a product may be covered, if it has caused damage or there is potential danger that it will do so (Product Withdrawal), and damage arising from a final product resulting from the transformation of your product or its combination with others (Mixing and Blending).
- Civil Liability for Work or Services Rendered: Provides cover for possible claims arising from material and/or personal damage that may have been caused by work carried out.
- Civil Liability for Rented Premises: Provides protection for any damage that may be caused to rented premises in which you conduct your business.